CDF projects[photo/wordpress.com]

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The Court of Appeal ruled that Constituencies Development Fund (CDF) is protected by the law, however, Members of the National Assembly cannot directly control its affairs and management.

A three-judge bench overturned the decision made on February 20, 2013, by Justices Isaac Lenaola, Mumbi Ngugi, and David Majanja, which nullified the law that created the fund, saying its subsequent restructuring was in accordance with the Constitution.

Appellate judges Erastus Githinji, Hannah Okwengu and GBM Kariuki similarly outlawed the appointment of elected leaders, except the Governor, to handle all county project committees.

They said the CDF committee is charged with the responsibility of initiating the process of identification and prioritization of projects, employment of staff, allocation of funds to various projects, tabling of reports and monitoring the implementation of the projects. Two of its members are among the three signatories to the bank account.

The court observed that the Projects Implementation Committee, which oversees the funds’ projects, has eleven members including the MP, who is an ex-officio member, and the quorum of the committee is half of total membership. The MP appoints eight of the ten members.

“It is evident that it is the MP who controls the committee and, therefore, influences the selection, prioritization of projects, allocation of funds and monitors the implementation of the projects. Those are no doubt executive duties,” the appellate judges pointed out.

 “The same reasoning applies to the appointment of county projects committee which coordinates the implementation of the projects. Section 37(1) (a) of the CDF Act, which appoints elected leaders, except for the appointment of the Governor, is similarly unconstitutional,” they said.

The judges said the National Assembly is entitled to appoint a select committee to perform an oversight role over the fund under Section 28 of the CDF Act. “The CDF Amendment Bill was passed in accordance with the Constitution and does not violate the principles of Public Finance Division of Revenue,” they said.